Polygon's Rally Stalls at $1.28, Signaling Bearish Outlook

Polygon (MATIC) is facing a downturn after encountering resistance at $1.28, with buyers failing to maintain momentum above $1.30. The cryptocurrency has fallen below moving average lines, signaling a bearish long-term forecast. However, the bulls have recently broken above the 50-day SMA, suggesting a potential return to previous highs.

Polygon Price Reverses After Resistance at $1.28, Signaling Bearish Outlook

By Coin Idol | March 25, 2024 at 6:01 PM ET

The price of Polygon (MATIC) has entered a downward trajectory after encountering resistance at $1.28, according to analysis by Coinidol.com. Buyers failed to maintain the positive momentum above the $1.30 high, resulting in a bearish reversal.

Long-Term Outlook: Bearish

Polygon had previously recovered from a downturn, but the recent rejection at $1.28 has pushed it below the moving average lines. The bullish momentum ended as the cryptocurrency fell below the moving averages, reaching a low of $0.91 before buyers stepped in to support the decline. MATIC currently trades at $1.02.

An upward price movement above the moving averages would signal a continuation of the uptrend.

Technical Analysis

MATIC has crossed above the 50-day SMA and is approaching the 21-day SMA. A breakout above the 21-day SMA would propel the altcoin back to its previous high of $1.30. However, as MATIC remains above the 50-day SMA, it could continue to fluctuate between the moving average lines.

The Relative Strength Index (RSI) is below 50, indicating that sellers are in control. The Moving Average Convergence Divergence (MACD) is also bearish, with the signal line below the MACD line.

Key Resistance and Support Levels

• Resistance: $1.20, $1.30, $1.40
• Support: $0.60, $0.40, $0.30

Near-Term Outlook

Polygon has resumed its uptrend by moving above the moving average lines on the 4-hour chart. However, the upward movement has been temporarily halted by doji candlesticks and resistance at $1.03. Additionally, Polygon has been trading within a range between $0.93 and $1.03 since the price decline on March 19. A break above the $1.03 resistance level would signal a resumption of the upward movement.

Overall, the technical indicators and price action suggest that Polygon is facing a bearish trend in the long term. The altcoin's inability to sustain momentum above $1.30 and its fall below the moving averages indicate a potential downward trajectory. Traders should exercise caution and monitor the key resistance and support levels to determine future price movements.